By Asset Allocator Journal Staff
According to Advisor Perspectives, investors are increasingly favoring emerging Asian bonds due to concerns about rising fiscal deficits in developed markets. Countries such as Malaysia, Indonesia, and Thailand have attracted attention by maintaining disciplined budget deficit targets, even as global economic conditions remain uncertain. As a result, these nations have seen robust demand in recent debt auctions, falling yields, and an influx of foreign investment, in stark contrast to the challenges facing long-term bonds in developed economies.
Business Matters reports that the UK’s third heatwave in four weeks is putting significant strain on small businesses, with some farmers seeing a 50% drop in grass and maize yields, squeezing revenue and raises fixed costs. Meanwhile, small retailers have suffered a 30% decline in turnover as consumer demand for items like chocolate and cake plummets during hot weather. Productivity losses are mounting: both infrastructure and the workforce are poorly prepared for extreme heat.
MedTech Dive reports that President Donald Trump has announced 30% tariffs on imports from the European Union and Mexico, set to take effect on August 1, 2025. In a letter to Mexico’s President Claudia Sheinbaum, Trump cited cartel activity and its connection to U.S. fentanyl trafficking as key concerns, warning of even higher tariffs if Mexico retaliates. EU President Ursula von der Leyen emphasized the EU’s commitment to dialogue but made clear that proportionate countermeasures will be adopted to protect European interests if necessary.
According to Advisor Perspectives, Bitcoin broke above $120,000 for the first time, peaking at $123,205 before settling near $121,600. This rally aligns with the U.S. House’s “Crypto Week,” where lawmakers are considering major bills such as the CLARITY Act and the GENIUS stablecoin package, signaling a push for clearer regulation. XBTO Trading’s George Mandres views this as evidence of Bitcoin’s evolution into a macro hedge and a structurally scarce store of value, reflecting growing institutional confidence.
The UK Office for Budget Responsibility’s warning of soaring debt signals imminent tax increases, as reported by Business Matters. The UK ranks high among advanced economies for national debt and borrowing costs, pressuring Chancellor Rachel Reeves to balance investment promises with fiscal discipline. Global volatility, including Trump-era tariffs, further complicates the economic outlook.
A Wealth of Common Sense observes that the 2020s may become the worst decade ever for U.S. government bonds, with long-term Treasuries suffering a 40% drawdown since 2022. The sharp decline stems from a rapid jump in inflation to 9% and a corresponding spike in interest rates after years of low yields. However, with current yields now between 4% and 5%, prospects for bond returns in the coming years appear brighter.
Advisor Perspectives notes that Apple is facing mounting pressure to overhaul its AI strategy after a 16% drop in its stock this year, wiping out over $630 billion in value. Investors are calling for bold moves, such as major acquisitions or partnerships with established AI firms, to help Apple regain its competitive edge. Analysts believe such steps could restore confidence and speed up Apple’s AI progress.
Business Matters reports that UK ministers are being pressed to add strong whistleblower protections to new DEI legislation targeting race and disability pay gaps. The Equality (Race and Disability) Bill would mandate large employers to disclose pay disparities, with advocates insisting on legal safeguards for whistleblowers to ensure honest reporting. Groups like the Black Equity Organisation argue that confidential channels are vital to protect employees from retaliation when exposing data manipulation.
